What is the best procurement strategy

Assignment Help Operation Management

Reference no: EM13822292

Discussion question DQ2 Chapter 4 of designing and managing the supply chain of simchi levi 3rd edition. Manufacturer Sells electricity for $20. They can buy it from 1 of 2 suppliers. Supplier 1 is a fixed contract and sells to the Manufacturer for $10. Supplier 2 is an option contract with $6 reservation price and $6 once product is delivered. Assume 6 months before demand is realized a contract must be signed. Contracts are assigned in February and Demand is realized in 10 weeks starting in August. There are 0 inventory costs and unsold items after 10 weeks have 0 value. What is the Best Procurement Strategy?

Probability Table

Demand 800 1000 1200 1400 1600 1800

Prob 0.11 0.11 0.28 0.22 0.18

0.1

Reference no: EM13822292

Questions Cloud

Are these skills important when working in human resources : Are these skills important when working in human resources? Why?

X be a variable contained in the interval : Llet f(x) = ( x^3/5000)(10 - x) and x be a variable contained in the interval [0,10] and f(x) = 0 for any other value of x. a. Prove that f(x) is probability density function. b. Find its cumulative distribution function. c. find p(1

What features you want to emphasize in your campaign : You have been asked to come up with a new ad campaign for a national pizza chain. You would like to target both young adults and families with children, but you don't have the budget for two separate campaigns. What are some variables that you could ..

A relevant economic article from a newspaper : Identify at least four (4) key points of a relevant economic article from a newspaper. The article must deal with any course concepts covered in Weeks 1-8. (Concepts covered- GDP, Demand, Supply, Market equilibrium, monopoly and price discrimination ..

What is the best procurement strategy : Discussion question DQ2 Chapter 4 of designing and managing the supply chain of simchi levi 3rd edition. Manufacturer Sells electricity for $20. They can buy it from 1 of 2 suppliers. Supplier 1 is a fixed contract and sells to the Manufacturer for $..

Calculate the weighted average cost of capital : Based on the information below, calculate the weighted average cost of capital.

Find probability of no units in the system : In a waiting line situation, arrivals occur around the clock at a rate of six per day, and the service occurs at one every three hours. Assume the Poisson and exponential distributions. Find probability of no units in the system. Find average number ..

Each constraint-feasible region and optimal solution : Use a graph to show each constraint, the feasible region, and optimal solution. Use the Algebraic Method to solve the problem. What is the optimal solution? Discuss the relationships in your final equations. Develop a spreadsheet and use Solver to fi..

What is the optimal value of the objective function : Use a graph to show each constraint and to identify feasible region. Identify the optimal solution point on your graph. What are the values of X and Y at the optimal solution? From your graph, what is the optimal value of the objective function?

User Account

All Pages